Take Profit 1 - 1.3356
Take Profit 2 - 1.3406
Take Profit 3 - 1.3456
Stop loss - 1.3176
The USDCAD pair has been in a bullish trend for the past few weeks, and it is currently trading near the top of its range. The current spot rate is 1.3276, and a buy entry point of 1.3276 is just below the recent high of 1.3296.
There are a few reasons why USDCAD could continue to rise in the near term. First, the USD is generally seen as a safe haven currency, and it has been strengthening against the CAD in recent weeks as concerns about the global economy have grown. Second, the US Federal Reserve is expected to raise interest rates more quickly than the Bank of Canada, which could put upward pressure on the USD against the CAD. Finally, the Canadian economy is expected to grow more slowly than the US economy in the near term. This is due to a number of factors, such as the war in Ukraine and the slowdown in China's economy. These headwinds could weigh on the CAD and lead to a decline in the USDCAD pair.
Technical analysis:
From a technical perspective, the USDCAD pair is trading above its 200-day moving average, which is a bullish signal. The pair is also forming a bullish ascending triangle pattern, which is a continuation pattern that typically leads to a breakout to the upside.
Fundamental analysis:
The US economy is expected to grow more quickly than the Canadian economy in the near term. This is due to a number of factors, including the strength of the US labor market and the country's consumer spending. The Canadian economy, on the other hand, is facing some headwinds, such as the war in Ukraine and the slowdown in China's economy. However, the Bank of Canada is expected to raise interest rates more quickly than the Federal Reserve, which could lead to a relative outperformance of the CAD against the USD.
Risks:
There are a few risks to consider before entering a trade on USDCAD. First, the global economy is facing some headwinds, such as the war in Ukraine. These headwinds could weigh on risk appetite and lead to a decline in the USDCAD pair. Second, the Bank of Canada is expected to continue to pursue an ultra-loose monetary policy, which could put downward pressure on the CAD. Finally, the Canadian economy is facing some headwinds, such as the war in Ukraine and the slowdown in China's economy. These headwinds could weigh on the CAD and lead to a decline in the USDCAD pair.
Overall:
I think USDCAD is a good pair to trade for those who are looking for a long-term bullish trend. However, it is important to remember that the forex market is volatile, and there is always the risk of a reversal. You should always do your own research before entering any trades.
Here are some additional factors that you may want to consider before entering a trade on USDCAD:
The economic outlook for the US and Canada.
The level of volatility in the forex market.
The price of risk assets, such as stocks and commodities.
Take Profit 2 - 1.3406
Take Profit 3 - 1.3456
Stop loss - 1.3176
The USDCAD pair has been in a bullish trend for the past few weeks, and it is currently trading near the top of its range. The current spot rate is 1.3276, and a buy entry point of 1.3276 is just below the recent high of 1.3296.
There are a few reasons why USDCAD could continue to rise in the near term. First, the USD is generally seen as a safe haven currency, and it has been strengthening against the CAD in recent weeks as concerns about the global economy have grown. Second, the US Federal Reserve is expected to raise interest rates more quickly than the Bank of Canada, which could put upward pressure on the USD against the CAD. Finally, the Canadian economy is expected to grow more slowly than the US economy in the near term. This is due to a number of factors, such as the war in Ukraine and the slowdown in China's economy. These headwinds could weigh on the CAD and lead to a decline in the USDCAD pair.
Technical analysis:
From a technical perspective, the USDCAD pair is trading above its 200-day moving average, which is a bullish signal. The pair is also forming a bullish ascending triangle pattern, which is a continuation pattern that typically leads to a breakout to the upside.
Fundamental analysis:
The US economy is expected to grow more quickly than the Canadian economy in the near term. This is due to a number of factors, including the strength of the US labor market and the country's consumer spending. The Canadian economy, on the other hand, is facing some headwinds, such as the war in Ukraine and the slowdown in China's economy. However, the Bank of Canada is expected to raise interest rates more quickly than the Federal Reserve, which could lead to a relative outperformance of the CAD against the USD.
Risks:
There are a few risks to consider before entering a trade on USDCAD. First, the global economy is facing some headwinds, such as the war in Ukraine. These headwinds could weigh on risk appetite and lead to a decline in the USDCAD pair. Second, the Bank of Canada is expected to continue to pursue an ultra-loose monetary policy, which could put downward pressure on the CAD. Finally, the Canadian economy is facing some headwinds, such as the war in Ukraine and the slowdown in China's economy. These headwinds could weigh on the CAD and lead to a decline in the USDCAD pair.
Overall:
I think USDCAD is a good pair to trade for those who are looking for a long-term bullish trend. However, it is important to remember that the forex market is volatile, and there is always the risk of a reversal. You should always do your own research before entering any trades.
Here are some additional factors that you may want to consider before entering a trade on USDCAD:
The economic outlook for the US and Canada.
The level of volatility in the forex market.
The price of risk assets, such as stocks and commodities.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.